www.elpasobuilders.

com
7 EL PASO
BUILDERS
A S S O C I AT I O N O F
National, State & Local
Building Industry News
2017: Issue 4

Official Statement:
Statement from
NAHB Chairman
Granger MacDonald
on Comments by
Commerce
Secretary Ross
Regarding
Canadian Lumber
Tariffs

Granger MacDonald, chairman

of the National Association of
Home Builders (NAHB) and a
home builder and developer from
Kerrville, Texas, today responded
to comments by Commerce
Secretary Wilbur Ross regarding
the imposition of tariffs on
Canadian lumber imports.
NAHB respectfully disagrees
with comments made by

NAHB: Lumber Duties Will Harm Consumers

Commerce Secretary Ross that
the tariffs on Canadian lumber
imports into the U.S. will have little

Short sighted action jeopardizes afffordability

effect on the cost of housing.
While Ross cannot cite specific
consequences regarding this
punitive tariff, we can.
If the 20 percent lumber duty
remains in effect throughout 2017,
NAHB estimates this will result in
the loss of nearly $500 million in
wages and salaries for U.S.
workers, $350 million in taxes and
other revenue for the governments
in the U.S. and more than 8,200
full-time U.S. jobs. Lumber prices
have already jumped 22 percent
since the beginning of the year,
largely in anticipation of new tariffs,
adding nearly $3,600 to the price
of a new single-family home.
Clearly, protectionist measures
to prop up domestic lumber
producers at the expense of
The National Association of
Home Builders (NAHB) today
denounced the decision by the
U.S. Department of Commerce to
impose a 20 percent
countervailing duty on Canadian
lumber imports, saying it will
harm American home buyers,
consumers and businesses while
failing to resolve the underlying
trade dispute between the two
nations.
NAHB is deeply disappointed
in this short-sighted action by the
U.S. Department of Commerce
that will ultimately do nothing to
resolve issues causing the U.S.-
imported lumber more than 95
percent came from Canada.
This means that imports are
essential for the construction of
affordable new homes and to
make improvements on existing
homes, said MacDonald.
The trade agreement that has
governed Canadian imports of
softwood lumber since 2006
effectively expired at the end of
2016. Uncertainty surrounding a
new trade pact is the primary
catalyst for the 22 percent spike
in the Random Lengths
Composite Price Index for lumber
since the beginning of the year.
NAHB believes the best way
to resolve this trade impasse
and avoid these negative
economic repercussions is to:
Urge the U.S. and Canada to
work cooperatively to achieve
a long-term, stable solution in
lumber trade that provides for
a consistent and fairly priced
supply of lumber.
Increase domestic production
by seeking higher targets for
timber sales from publicly-
owned lands and opening up
additional federal forest lands
for logging in an
environmentally sustainable

millions of U.S. home buyers and
lumber users is not the way to
resolve the U.S.-Canada trade
dispute or boost the U.S. economy.
As an industry that is on the
front lines of this issue, NAHB
would be happy to discuss this
matter with the White House and
Canadian lumber trade dispute
but will negatively harm American
consumers and housing
affordability, said NAHB
Chairman Granger MacDonald, a
home builder and developer from
Kerrville, Texas.
These price hikes have
negative repercussions for
millions of Americans. It takes
about 15,000 board feet to build
a typical single-family home and
the lumber price increase in the
first quarter of this year has
7
manner.
Reduce U.S. lumber exports.
Taking these steps to meet our
nations lumber needs is
essential because tariffs
needlessly increase the volatility
of the lumber markets, resulting

7
seek solutions that will not harm Thirty-three percent of the added almost $3,600 to the price in higher prices for U.S. home

10
housing affordability for millions of lumber used in the U.S. last year of a new home. buyers and other consumers and
hard-working American families. was imported. The bulk of the businesses who use lumber,

# JUNE Make plans now to participate in First Home Saturday -

a home buying fair to be held at Bassett Place on June 10.
EL PASO
BUILDERS
A S S O C I AT I O N O F

FIRST
First Home Saturday is a highly promoted event is an ideal opportunity to identify
HOME rst time home buyers and oer your services as they begin their search for a new
SATURDAY home.
2 Builders Outlook 2017 Issue 4

STAY SAFE.
CALL 811 BEFORE YOU DIG.
If you have digging or excavation work to do, remember to call 811 at least
two business days in advance.

Natural gas and other utility lines may be buried beneath the surface. By calling
811, utility crews can mark locations of underground lines at no charge. The
markings are done in paint and will eventually wash away. Marking line locations
can help prevent you from accidentally damaging a natural gas line or another
utility line.

Always call 811 before you dig. It can help keep you and your construction crew
safe, and failing to do so can result in a fine.*

Please continue to direct service line and meter set requests to the Texas Gas
Service Builder Hotline at slimgas-metroElPaso@onegas.com or 1-866-206-9587.

* Texas Utilities Code 251.201 Civil Penalties

2017 Issue 4 Builders Outlook
Presidents Don
Message
Rassette
President,
El Paso Association
of Builders
Why should I join the El Paso
Association of Builders? Why
Why should I
should I belong to my professional
organization? Whats in it for myself
join the
or my company? What value does
my company or myself, get from
El Paso being a member?
Association of
Good question, right?
Well from NAHB, we are eligible
Builders?
for Member Advantages. This
includes programs/discounts from:
Houzz, General Motors, FCA US
LLC (Chrysler/Jeep), UPS, Geico,
2-10 Home Buyers Warranty,
TSYS, Dell, APP, Hertz, Avis,
Budget, Office Depot, G& K
Services, Omaha Steaks, Trip Best,
Wyndham Hotel Group, FTD. For
details go to www.nahb.org/ma.
Using just some of these could pay
for your membership and help your
bottom line.
From TAB, we also have some
membership benefits. At the state
level this includes: Residential
Contract Packages, Model
Construction Safety Programs,
Jobsite Safety Standards
Packages, Product Depot,
Endorsed Insurance Program,
Member Rebate Program,
Members Choice Health
Insurance, Employee Benefits
Marketplace, National Purchasing
Partners and some suppliers who if
used, donate back to arms of our
associations. As above, using the
benefits could help your bottom line
and streamline some of your
business processes.
Locally, the benefits are not
always as programs or direct
benefits, but there are advantages.
One huge program that we have
that others are looking at, is our
Retirement Plan with Ruth Rivera,
from Bukaty. Are you or your
company prepared for what is
ahead? A great example of an
advantage of being a member is
last years update to the Energy
Code. Multiple training
sessions/educational seminars
were held and led by our
association, even to non-members.
Everyone had opportunities to be
prepared well before the effective
date of September 1, 2016.
3
Another example of how the
association is working on your
behalf are the recent meetings and
discussions with the City of El Paso
Building Department on wall
heights, wind loads, and material
usage to insure conformity to the
new codes. After much discussion,
the City did flex some and
beginning tables were amended.
Did we get concessions to do
business as has been done in the
last 20 years? Of course not. Did
we agree to changes that were
made and which were better than
first proposed? Of course we did.
We worked together with the City.
This is a huge benefit.
To me, it is not so much what
membership does for my company,
but now what can I do to help the
different levels do even more. How
about you, what are you doing to
enhance our El Paso Association of
Builders?
LETS PREPARE TO SUCCEED
4
Executives
Message
Ray Adauto,
Executive
Vice President
EPAB
Home building is booming, but there
are some hurdles we need to consider.
As pointed out over the last few
months homebuilding is at levels not
seen for several years. Thats good
because everyone is busy. What
happens to housing is good for the
health of the American economy
overall as jobs are created and the
money from those jobs goes round and
round. Sounds good and all but theres
a monkey wrench in here, one that
could severely impact housing, and
even car and truck dealers. Im talking
automobile subprime lending.
The era of easy credit for housing
has been gone for some time as
mortgage lenders tightened their
lending. Yet for other credit ventures
such as auto loans the opposite has
been the trend. Vehicle loans are at an
all-time high and unfortunately so is
subprime or risky loan lending over the
last couple of years. Reports show that
the size of this market is larger than
you may imagine. Earlier this year
auto loans surpassed the one trillion
dollar mark for the first time ever.
Americans are borrowing more than
ever for new and used vehicles, and
30- and 60-day delinquency rates rose
in the second quarter, according to the
915 - 585 - 3330
www.rassettecommunities.com
Builders Outlook
Driving the economy into a bubble
automotive arm of one of the nations
largest credit bureaus. The total
balance of all outstanding auto loans
reached $1.027 trillion between April 1
and June 30, 2016 the second
consecutive quarter that it surpassed
the $1-trillion mark, reports
Experian Automotive. The average size
of an auto loan is also at a record high
touching the $30,000 mark.
More consumers are also leasing
with about 31% of all auto/truck loans
in that category. The increase in
leasing could have repercussions in
the next two to five years. As more of
those leased vehicles are returned it
will tend to depress the price at which
they sell at auctions. Both 30- and 60-
day loan delinquencies are up but the
combined subprime and deep-
subprime share of new and used auto
loans and leases dropped from 23.3%
in the second quarter of 2015 to 22.8%
in second quarter of 2016.
For the housing market this
information has a dark cloud.
Consumers finding it easier to get a
vehicle also may also be unable to
qualify for a new home loan. That
could lead to higher numbers of
available new home in inventory which
could then extend a credit crunch on
smaller builders who need financing to
build. Such a crunch could run the
smaller guy out of business if it
lingered.
The consequences are high no
matter how you look at it. As
auto/truck leases increase there is an
equal increase in residential rentals,
meaning again that home buying is
slowed or at least being delayed. The
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2017 Issue 4
As auto/truck leases increase there is an equal
increase in residential rentals, meaning again
that home buying is slowed or at least being
delayed. The danger is that with rising
delinquency in auto loans that the poor credit
ratings of potential home buyers freezes them
out of the market forever...
danger is that with rising delinquency in Investment fund managers have
auto loans that the poor credit ratings bought billions of dollars worth of this
of potential home buyers freezes them securitized debt while trying to
out of the market forever. Some maximize returns in this low-interest
believe that the stage is set for a crisis rate environment. Even though this
that will absolutely dwarf 2008. The bubble, on its own, isnt enough to
national debt has nearly doubled since destabilize the economy, the additional
the beginning of the last crisis, problems with student loans and record
corporate debt has doubled, student high rental costs have had a
loan debt has crossed the trillion dollar devastating impact on the net worth of
mark, auto loan debt has crossed the most working Americans.
trillion dollar mark, and total household The impact will be felt by our
debt has crossed the 12 trillion dollar automotive dealerships two of whom
mark. Wells Fargo is one of the largest are members of the EPAB. As banks
holders of subprime auto debt and begin to ask for better credit from
recently took steps to limit their consumers the glut of inventory will
exposure when investors started to have a significant impact on
recognize the possible downside. It has dealerships who are paying for the
even been reported that many of these inventory on credit.
loans were given out to buyers who We are living with the greatest debt
had no credit score at all. bubble in world history, and there are
As a recent report from Antimedia signs that this giant bubble is bubbling,
says the risks arent limited to just as President Trump said on the
lenders and borrowers but also extend campaign trail. If it burst the pain could
to institutional investors. Thousands of be greater than most people would
these high-risk car loans have been dare to imagine. Not just for housing
bundled together into products similar and car sales but the whole economy
to the mortgage-backed securities that
undermined financial stability in 2008.
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 National
2017 Issue 4
Builder News
New Home Sales
Continue Upward Trend
n Sales of newly built, single-family
homes rose for the third straight month,
increasing 5.8 percent in March to a
seasonally adjusted annual rate of
621,000 units, according to newly
released data by the U.S. Department of
Housing and Urban Development and the
U.S. Census Bureau.
This months increase in new home
sales is aligned with solid builder
confidence and shows that the spring
home buying season is off to a strong
start, said Granger MacDonald, chairman
of the National Association of Home
Builders (NAHB) and a home builder and
developer from Kerrville, Texas.
However, builders are concerned that
ongoing increases in building material
costs will hurt housing affordability,
especially given todays proposal by the
Department of Commerce to impose a
hefty tariff on Canadian lumber.
The March sales numbers are the
second highest on record since the Great
Recession, which is especially
encouraging considering the poor weather
conditions throughout many parts of the
country, said NAHB Chief Economist
Robert Dietz. With tight existing home
inventory, rising household formations and
continued job creation, we can expect
further growth in new home sales moving
forward.
The inventory of new home sales for
sale was 268,000 in March, which is a
5.2-month supply at the current sales
pace. The median sales price of new
houses sold was $315,100.
BUILDING
Builders Outlook
Regionally, new home sales increased
25.8 percent in the Northeast, 16.7
percent in the West and 1.6 percent in the
South. Sales fell 4.5 percent in the
Midwest.
Increases in Remodeling
Market Indicators Reflect
Broad-Based Confidence
seeing broad-based improvement with all
n The National Association of Home
Builders (NAHB) Remodeling Market
Index (RMI) rose to 58 in the first quarter
of 2017, an increase of five points from
the fourth quarter of 2016 and the highest
reading since 2015.
An RMI above 50 indicates that more
remodelers report market activity is higher
(compared to the prior quarter) than
report it is lower. The overall RMI
averages ratings of current remodeling
activity with indicators of future
remodeling activity.
A milder than usual winter has led to
increased remodeling activity and a
positive outlook for spring, said NAHB
Remodelers Chairman Dan Bawden,
CAPS, GMB, CGR, CGP, a remodeler
from Houston. Remodelers are seeing
stronger market conditions with customers
more willing to spend money on both
small and large projects.
Regaining strength from a three-point
dip in the previous quarter, the current
market conditions increased five points to
58. Among its three major components, all
saw an increase from last quarter, with
major additions and alterations up four
points, demand for smaller remodeling
projects increasing by seven points and
El Pa
aso
the home maintenance and repair
component rising six points.
The index measuring future market
indicators also reached 58, meeting the
highest point of 2016. Calls for bids rose
significantly from 49 to 59, amount of
work committed grew from 50 to 58, the
backlog of remodeling jobs increased
from 55 to 62, and appointments for
proposals remained constant at 54.
At 58, the Remodeling Market Index is
major components well over 50, said
NAHB Chief Economist Robert Dietz.
However, remodelers will face challenges
meeting the demand as the labor
shortage continues and costs for
materials, such as lumber, are rising.=
For the full RMI tables, please visit
www.nahb.org/rmi. For more information
about remodeling, visit
www.nahb.org/remodel.
New Homes Strengthen
Economy, Spur Job
fast pace, with monthly employment data
Growth
n As the housing industry celebrates
New Homes Month in April, newly
released data from the U.S. Commerce
Department confirms the significant
contribution that residential construction
has on the U.S. economy.
Final estimates of fourth quarter 2016
gross domestic product (GDP) growth
show that housing's share of GDP stands
at 15.6%.
"Home building is a key driver of the
American economy," said Granger
MacDonald, chairman of the National
Association of Home Builders (NAHB)
SINCE 1950
5
and a home builder and developer from
Kerrville, Texas. "Housing creates new
income and jobs, purchases of goods and
services, and revenue for local
governments."
NAHB research shows that building 100
single-family homes in a typical metro
area creates 297 full-time jobs and
generates $28 million in wage and
business income and $11.1 million in
federal, state and local tax revenue.
The industry continues to add jobs at a
for February showing that home builder
and remodeler employment increased by
18,900. Over the last 12 months, home
builders and remodelers have added
136,000 jobs on a net basis and
residential construction employment now
stands at 2.707 million.
"Our builders remain optimistic about
the market for newly-built single-family
homes and consumer confidence is
strong, which should set the stage for a
strong spring home buying season,"
MacDonald said. "Americans continue to
place a high priority on homeownership
and work hard to achieve this goal for
their families."
6 Builders Outlook
Expert
Analysis
Elliot Eisenberg
Economic & Policy
Blog
After almost reaching $55 per barrel
(bbl), oil prices are again falling. What
makes this decline particularly baffling is
that in late 2016, after seeing prices
languish for two years, the Organization
of Oil Producing Countries (OPEC)
announced that it, along with non-OPEC
members such as Russia, would
collectively reduce production by 1.8
million bbl/day, or 2% of global supply,
starting January 1st. Many observers
thought that removing that much supply
would stop inventory growth and put
upward pressure on prices. After the
decision to curtail pumping was
announced, oil prices, as expected,
quickly jumped from about $43/bbl to
close to $55/bbl. Recently, however, oil
prices have again started falling. The
question is why, and is this decline more
likely to be temporary or permanent?
There are four main reasons why oil
prices are again declining. Firstly, the
decision to cut global production set off a
flurry of buying by hedge funds, which
pushed up prices. However, the rise in
prices also encouraged American shale
producers to ramp up drilling and
production. To wit, the number of oil rigs
in operation has more than doubled in
the past 12 months. Since OPEC
High Storage Levels, Low Oil Prices
announced that production cuts were
coming, US production has increased by
almost 500,000 bbl/day. Moreover, the
number of wells that are drilled but
uncompleted (DUCs) has risen from
1,250 to 1,750. As oil prices recover,
DUCs, which can be quickly completed,
are likely to flood the market with yet
more supply.
Second, several OPEC nations,
including Iran, Libya, and Nigeria, were,
for any number of reasons, not asked to
cut production and have instead all
increased production dramatically.
Further complicating matters is that
many of the nations that have been
called upon to make cuts do not have a
great history of compliance. In addition,
Canada and other non-OPEC nations
that are in no way involved with OPEC
are also increasing production.
The third factor is that in the months
leading up to January 1, 2017, when the
above-mentioned production cuts were
to commence, most OPEC nations
sharply raised production levels and
exports to maximize short-term
revenues. And, after weeks of
transatlantic travel, this oil is now finally
reaching US shores.
2017 Issue 4
The final factor is the shape of the
curve of futures prices, which is closely
related to inventory levels. Inventory
levels continue to rise and are now at a
record 540 million barrels. With
inventories so large, near-term prices for
oil are lower than long-term prices, a
relatively infrequent situation known as a
contango. When the contango is
sufficiently large, such that storage costs
are less than the long-term price of oil
minus the short-term price, which is
currently the case, investors and
speculators buy oil and store it. In the
process, the near-term price of oil is
driven lower still.
To break this cycle, OPEC will have to
convince markets that inventories will
soon decline and thereby raise near-
term prices. The best way to do this
would be to promise to extend the
current production cuts that are set to
expire on June 30th and perhaps
promise additional production cuts. The
only problem is that as prices rise in
response those actions, American shale
drillers will drill more wells and the cycle
will continue.
 EPAB MEMBER ONLY EVENT
2017 Issue 4 Builders Outlook 7

REACH POTENTIAL HOME BUYERS

JOIN US JUNE 10
A special one day home buying extravaganza!

Bassett Place, witi h its central

Make plans now to participate in First LOCATION

location and ample parking, is a

Home Saturday - a home buying fair to

perfect location for First Home

be held at Bassett Place on June 10.

The highly promoted event is an Saturday. Recent demographic

ideal opportunity to identify first
time home buyers and offer your
services as they begin their
search for a new home.
data indicates that this is an ideal
venue to target first time buyers.
The FirstHome Saturday Event
SHOWTIME

A special grand prize will open June10 at 10:00 AM and

sweepstakes promotion will be
featured in all event advertising to
help encourage a great turn-out.
By participating in First Hoo me
Satuurday, you will have the
opportunity to meet first time
home buyers at your exhibitor
conclude at 6:00 PM.
Exhibitors will be allowed to set up
their booths starting at 9:00 PM
FridayJune 9 & Saturday June 10
between 9:00AM - 9:30AM.
A media plan with extensive radio,
ADVERTISING

booth and receive contact data for
visitors entering our sweepstakes.
First Home Saturday is specifically
designed for affordable home
builders and those who sish to
reach this valuable target market.
television, and print advertising wil
begin 10 days prior to the event
and run until June 10. A social
media campaign will also be
launched two weeks before the
event.

The event is exclusively Booths are available for $429 for a

EXHIBITOR BOOTHS

designed for Members of the 10 x 10 space.

El Paso Association of Builders

7
only. Every participant must be a
$2500 Sponsorship Packages
CORPORATE SPONSORSHIP
member of EPAB in good
standing. include featured prominence in all
advertising and an exhibitor booth.

An Exclusive Members Only

SPACE IS LIMITED -

Event broug
ght to you by:
CALL EPAB TO RESERVE YOUR
SPACE TODAY! 915-778-5387

The El Paso Association of Builders

6 0 4 6 S u r e ty D r iv e E l P aso Tex as 7 9 9 0 5

EL PASO
915-778-5387
Event & Promotion by Snappy Publishing, LLC
BUILDERS
A S S O C I AT I O N O F
9158202800 ted@snappypublishing.com
Builders Outlook: On the Scene

Spring Golf
Tournament
The annual spring golf tournament
affectionately called a golf Pachanga
(Spanish for exuberant party) went off
with beautiful weather on April 19. The
Vista Hills Country Club course was in
excellent shape as eighty three golfers
took to the links.
Golf Pro Terry Jennings and crew did
a great job welcoming the Association.
The event title partner was Haskins
Electric and Chuck Haskins was happy
with the results. I always enjoy coming
out to play and to get some new
contacts. Today was just great and Im
really thankful for the response,
Haskins told the Outlook.
In addition to the title partner other
members stepped up to the plate with
Pioneer Bank doing the breakfast
partnership; HUNT Communities
partnering on the lunch awards;
Morrison Supply and Franklin Building
Materials teamed up as beverage
partners; the $10,000 hole in one
challenge partner was Builders Source
Appliance Gallery; while HUB
International, ACME Brick, Bella Vista
Custom Homes, and Rassette Homes
teamed up to sponsor long drives on
par 4s. The driving range was
supported by Interceramic, while
Legacy Real Estate took on the Target
on the Fairway. It was Patrick Tuttle
who in the end provided the target on
the fairway prizes as an upsell raffle.
Our thanks to all of our partners for
supporting the association.
Our golf tournament sells out very
quickly and its in large part to the fact
that we try hard to ensure fun and an
opportunity for networking. The golf
chairman, Sam Shallenberger is
grateful to the association members. I
want to thank all of our members who
supported the tournament and most of
all thanks to Margaret for all of her work,
something a lot of people forget, Sam
said. We have fun, we have great
weatherwhat else could you ask for?
Plans are already being made for our
fall golf challenge that is for the more
experienced player but still designed to
have fun. We like doing two different
tournaments hoping that a lot of our
members can feel welcome,
Shallenberger said.

Thank you to our Partners:

Title Partner The four long drives: Driving range:
Haskins Electric HUB International Interceramic
Lunch Host Acme Brick Target on Fairway:
HUNT Bella Vista Custom Office Legacy Real Estate
Breakfast Host Rassette Homes Special Thanks to Patrick Tuttle for taking
Pioneer Bank pictures and for the gifts for our special
raffle.
 2017 Issue 4

Wacha
Tournament
Wacha. Washers. Watcha. No
matter how you spell it theres fun in
having the event we call the Wacha
Tournament. Case in point was our 3rd
annual Wacha throw on April 27.
Twenty one teams participated in the
throw with teams of two competing
against each other and themselves.
The idea of a washer throw has been
around a long time and most people
perhaps played a form of the throw with
bean bags. Some call it corn-hole
game, but no matter the idea at our
event is to get to 21 points before your
opponent. The game starts with all
teams playing a best two out of three
match, then move on to quarter finals
with two out of three needed to move on
to the semifinals and then the
championship. Sounds simple but the
throw we use has some larger washers,
like you would use on a big bolt. Those
washers may seem light when you
start, but after throwing them for a while
the weight plays on your arm muscles.
If you advance to the semis you may
have thrown six or seven matches and
at least 14 games. Each game can go
on for twenty minutes or more. The
longest match in this years event went
over an hour, finally being settled with a
round of rock, paper, scissors.
The fun part of the event is being
around folks in a party type sporting
event where tactical methods overrule
might. Skill is needed and a deft touch
required because the washers dont fly
naturally. I think we need to see those
guys over there because they sure look
like ringers to us said Danny Gomez
from Randall Smith CPA firm as he
scouted the Rudy Guel Construction
team. We also think that they may find
themselves with some hidden talent
here, Gomez continued feeling good
about their prospects. Brenda Aguirre
from GECU said she was amazed that
women were competing head to head
with the guys. This is awesome. I love
seeing all the women here competing,
she said.
Eight member companies supported
the Wacha Tournament and they
include Interceramic, Randall Smith
CPA, daltile, El Paso Star Ready Mix,
Bella Homes, GECU, Stewart Title, and
Builders Source Appliance Gallery. Our
thanks to each one for the support.
Margaret, Lorena Contreras, Sandra
Lucero and Ray prepped the hot dogs,
got the beer, soda and water cold and
Michael Armstead of El Paso D J
service spun the great music. We get a
lot of looks from all the folks who work
on Surety drive wondering what the
heck is going on, said Ray. What they
cant figure out is why theres so much
fun going on, and thats just fine with
us, he said. Henry Tinajero from

Thank you to our Partners:

WestStar Bank put it this way. We can
come out and have a really good time
with something different and we get to
see a lot of our customers and friends.
When it was all done our winning teams Randall Smith CPA Stewart Title
included El Paso Star Ready Mix with Daltile GECU
the first and third place team and GECU
winning second place. Congratulations
Builders Source Appliance El Paso Star Ready Mix
and thanks to all our sponsors, players, Gallery Bella Homes
teams, and support. Interceramic
10
Lending
Low mortgage rates push
refinances up 7%
Total mortgage application volume
rose 2.7 percent the last week in April,
according to the Mortgage Bankers
Association.
Volume was 18 percent lower
compared with to the same time one
year ago.
The refinance market came back to
life last week, as mortgage rates fell
further. Homebuyers, however, were
not as easily swayed by rates.
Total mortgage application volume
rose 2.7 percent, seasonally adjusted,
for the week, according to the
Mortgage Bankers Association.
Volume was 18 percent lower
compared with the same week one
year ago.
Mortgage refinance volume remains
far weaker than it was last year, when
interest rates were lower, but it did rise
7 percent week to week as rates sank
to the lowest level since just after
following the presidential election. The
size of the average refinance loan
also increased, as large-balance
borrowers are more rate sensitive.
Refinances are still 34 percent below
where they were a year ago.
The average contract interest rate
for 30-year fixed-rate mortgages with
conforming loan balances of $424,100
or less decreased to 4.20 percent
from 4.22 percent, with points
increasing to 0.37 from 0.35, including
the origination fee, for 80 percent
loan-to-value ratio loans.
Builders Outlook 2017 Issue 4
A Solid Foundation
Written Insured
for Your Business
New Home
Warranties
"The drop was driven by continued
investor concerns about the French
election, though Sunday's first-round
voting results apparently have
alleviated some investor fears," said
Lynn Fisher, MBA vice president of
research and economics.
Homebuyers were less concerned
with mortgage rates and more
frustrated with the lack of homes for
sale. Mortgage applications to
purchase a home fell 1 percent for the
week and are just 0.4 percent higher
than the same week last year. The
supply of homes for sale continues to Texas Strong for Over 35 Years!
drop amid strong demand and low
production from the nation's
homebuilders.
Wide array of programs and services
Mortgage rates may eventually FHA, VA and USDA Approved
become a bigger concern. They began Limited member liability
rising again this week, as investors
turned from the French election to the
FREE marketing materials
possibility of U.S. tax reform.
FREE mediation to resolve disputes
"In general, investors have piled
back into riskier assets like stocks
because the French election reduces
long-term risks to the European
Union," said Matthew Graham, chief
operating officer of Mortgage News
HOME
O F T E X A S
Daily. "The prospects for tax reform
have a similar effect in that they
encourage investors to favor riskier MARK SMILEY
assets at the expense of bonds. When
demand for bonds decreases relative
800-445-8173
to supply, rates move higher." sales@homeoftexas.com
-www.CNBC,com www.homeoftexas.com/ElPasoOutlook

Experts: Spring home-buying
2017 Issu 4
season starts off with a bang
But first-time buyers face headwinds from high prices
The spring home-buying season is in full swing
and it started off with a bang.
Home prices increased in February to a new
high for the fourth consecutive month, according
to the S&P CoreLogic Case-Shiller Indices,
released Tuesday by S&P Dow Jones and
CoreLogic.
And another release Tuesday from the Federal
Housing Finance Agency showed home prices
rose 6.4% annually and 0.2% from the prior
month.
But these rising home prices didnt hold back
new home sales, which increased a full 5.8%
monthly and 15.6% annually, according to
Tuesdays release from the U.S. Census Bureau
and the U.S. Department of Housing and Urban
Development.
The 2017 spring home shopping season has
started off with a bang, and at this point the
strength of the market shouldnt come as much of
a surprise, Zillow Chief Economist Svenja Gudell
said. February Case-Shiller numbers point to
more fierce competition in the housing market.
The thing to watch for now is when market
conditions will shift, and change does seem to
loom on the horizon, with rising mortgage interest
rates and flattening rents, Gudell said. Both
could put a dent in home-buyer demand and
overall price growth and affordability.
Another expert confirmed that the market is
strong for now, but explains high home prices and
low inventory create significant headwinds for first-
time homebuyers.
Strong demand bolstered by income and job
growth sets the stage for intense competition and
continued price growth in the housing market,
Trulia Senior Economist Cheryl Young said.
Consumers are likely to also take advantage of
mortgage rates as they remain low, Young said.
While the housing market looks to be recovering,
these high prices impact the affordability of
homes, directing the strongest headwinds towards
starter-home buyers.
But one expert explained that while new home
sales were above expectations in March, home
11
Builders Outlook
prices are actually beginning to level out.
New home sales for March were above our
new h o m e s
expectations, said Tian Liu, Genworth Mortgage
Insurance chief economist. Strong demand from
homebuyers and very tight supply conditions in
for el paso...
the overall housing market are fueling demand for
new homes.
a s il y f o u n d h e re
In addition, prices on new homes are
stabilizing, suggesting more affordable homes are
e
coming to the market, which will help builders
capture more demand from first-time
February 2017
FREE
homebuyers, Liu said.
el paso
While the Case-Shiller report shows home
builders
prices increased to a new high, the rate of
Introducing
increase slowed.
The pace of house price gains slowed in El Paso New
February according to Case-Shiller, with the
smallest month-on-month rise since July last
year, Capital Economics Property Economist
Matthew Pointon said.
Home Builders
After the new home sales report showed
Marchs increase, one expert explained this magazine & website
increase is likely to continue throughout 2017.
We expect new home sales to rise further over
the course of 2017 in response to solid job gains,
...
more information
faster wage growth, still low, albeit rising,
oMoves.com for
Visit www.ElPas
mortgage rates, and faster household formations,
said Nationwide Chief Economist David Berson,
Part of Homes of El Paso magazine
who served as chief economist at Fannie Mae for
over 20 years. Mailed monthly to thousands of local homes
However, the increase in new home sales may
not be much help for first-time homebuyers. El Paso Airport distribution
The good news is that new home sales
jumped for the third month in a row, to about the
same as last year's peak in July, realtor.com
Stand alone magazine each quarter
Senior Economist Joseph Kirchner said. Already
this spring market is challenging last year's high- Call Martha today for more
water mark.
The bad news is that sales are increasingly information at (915) 204-7017.
concentrated at the mid- to upper-end of the price
range, Kirchner said. Sales of affordable new
homes under $200,000 dropped to 12% from 17%
of the market since last April.
Another Mesa Publishing Publication, serving El Paso Home
Buyers for 25 years. www.MesaPublishing.com
Source: http://www.housingwire.com
www.ElPasoNewHomeBuilders.com
12 Builders Outlook 2017 Issue 4

Updated every month, here is a list of the 2017 EPAB Membership.

EPAB Membership Remember to please do buinsess with fellow members.

Builder members Pointe Homes Cognent, Inc. Mechanical Technologies

as of April 1, 2017 Carlos Villalobos Martin Paredes Jaime Zubiate
Porter Homes Conde, Inc. Morrison Supply
AT Architectural Designs Albert Porter Conrad Conde Sam Shallenberger
Elsa Taracena R.C. Baeza & Associates CQC Testing and Engineering, LLC MTI Ready Mix, Inc.
Accent Homes Robert C. Baeza Jaime Rojas Tony Mullen
Mark Dyer/Raul Chavez R.E. Welch Contractor Dal-Tile Neeuhome.com LLC
Bain Construction Gordon Welch Joseph Cepeda Walter Pichardo
Scott Bain Rassette Homes, Inc. Demcon Disposal Management, LLC New Era Foam
Bella Homes Donald Rassette Aby Escorza George Tollen
Leti Navarrete Santana Custom Homes Dempsey, Cooper & Lane, LLC Passage Supply
Bella Vista Custom Homes, Inc. Fernando Santana Richard T. Dempsey John Chaney
Edgar Garcia Southwest Land Development Serv. Dorney Security Patriot Mortgage
BIC Homes Doug Schwartz John Dorney Randy Bowling
Antonio Cervantes The Heritage Group DWS Building Supply Pella Windows
Carefree Homes David Bingham Sabrina Voorhies Jason Bates
Richard Aguilar Trejo Construction Co. E.F. Building Materials, Inc. Performance Glass & Aluminum
Casas De Leon, LLC Juan Trejo Efren Fraire Hector Hernandez
Nick Bombach Tropicana Building Corp. Eagle Roofing Products Pioneer Bank
Classic American Homes Bobby Bowling IV Scott Aguilar Kathy Carrillo
Priscilla Hernandez Tropicana Development El Paso Building Materials Post Tension
Crown Heritage Homes Greg Bowling Ken Wade Dennis Moore
Lydia Mlouhi Tropicana Homes El Paso Disposal Powerfoam Insulation:
Cullers & Caldwell Builders Randy Bowling Irma Parsons Metlspan NCI Group, Inc.
John Cullers Tropicana Properties El Paso Mortgage Bankers Association Arnie Pederson
Cullers Homes Demetrio Jimenez Randi Cabrera Randall Smith, CPA
Jason R. Cullers Villagi Homes, LLC El Paso Star Ready-Mix Concrete Inc. Randall Smith
Custom Dream Homes Kristi Eddings David Armendariz Real Estate Weekly Newspaper
Leti & Javier Navarrete Will Harvey Development El Paso Times Riley Stephens
D. R. Horton Homes Will S. Harvey Jose Molina Rebath of El Paso/Las Cruces
Jaime Gonzalez Winton/Flair Homes El Paso Truss Lisa Walling
Dawco Home Builders Herschel Stringfield Luis Mendiola Remcon Self Storage
Walter O. Lujan El Paso Winnelson Joan Swahlen
Deal-2-Deal Homes Associate Members Rene Goldfien Richman Group Affordable Housing Corp.
dba Deal-2-Deal,LLC Ferguson Enterprises Inc. Kevin Hoffman
as of April 1, 2017
Delton Deal Albert Holguin Rocky Mountain Mortgage Company
Del Rio Engineering, Inc. First Light Federal Credit Union Dean Inniss
84 Lumber Lorenzo Revelez Roe, Brad
Sal Masoud Ernie Chavez
Diamond Homes, LLC Firth, Johnston, Bunn & Kerr Bradley Roe
ABC Supply Co., Inc. Jay Kerr Rudolph Chevrolet
Valerie Baquera Larry Eck
Donald Ward Builder, Inc. Foxworth Galbraith Lumber Art Smith
Acme Brick Company Bret Thompson Sarabias Blue Sanitation
Donald Ward Vanessa Rocha; Steve Bush
E. Valencia Land Development LLC Franklin Building Materials Monica Brown
Adams Moulding & Lumber Ricardo Aguilar; Cristina Sheldon Senercon
Eddie Valencia Tom Swahlen
Edward's Homes, Inc. GCC Sun City Materials, LLC Javier Ruiz
Area Iron & Steel Works, Inc. Victor Tito Marquez Sherwin Williams Paint
Eduardo Fernandez Fred L. Edmonston Jr.
EPT Land Communities GECU- Greater El Paso Credit Union Cruz Lopez
Atrium Homes Brenda Aguirre Sierra Title Company/Lawyers Title
David Bogas Ricardo Bocardo Jr.
Everest Homes GEPAR-Greater El Paso Chris Morales; Angelique Roman
Bank of Texas Assoc. of Realtors Simpson Strong-Tie Company, Inc.
Edmundo Dena, Jr. Ray Owen
Fortune Custom Homes Sharron Ramirez Ken Donham
Barnett & Bennett Construction Hardware Specialties Snappy Publishing, LLC
Javier Andrade Ben Trzyna
Gaddy Construction Jeff R. Paxton Ted Escobedo
Baron Supply Harris Real Estate Group Solar Smart Living
Charles Gaddy David Trammell
GMF Custom Homes, LP Lane Harris Larry Perea
Barragan & Associates Haskins Electric Southwest Dcor El Paso Corporation
Frank Torres Benito Barragan
Guel Construction Charles B. Haskins, Jr. Chris Matthews
Barrett Airworks Home of Texas Spectrum Technologies
Rudy Guel Alexandro Castro
Hakes Brothers LLC Mark Smiley Miled Daou
Beasley, Mitchell & Co., LLP Home Performance Testing Stewart Title of El Paso
Chris Hakes Brad Beasley
Hanson Asset Management, LP Fernando Garcia/Ray Gonzales Cindy Bilbe
BMC Select HUB International StrucSure Home Warranty
Russell Hanson Jaeson Iovinella
Homes by Design Luis Rosas Scott Whisenant
Boise Cascade Interceramic Tile & Stone Gallery Su Casa Magazine
Leslie Driggers Hoard Mike Flores
Hunt Communities, LLC David Holguin Bob Skolnick
Bonded Builders Home Warranty Grp. J & H Concrete & Post Tension Sun City Winnelson
Kathy Parry Bill Deal
Icon Custom Home Builder, LLC. Jorge Herrera Dean Moore
Border Solar James L. Ellis, CPA, PC Texas Gas Services
Carlos Garcia Javier Ruiz
Industrial Realty Group Incorporated Jim Ellis Mica Short
Builders Source Appliance Gallery Jobe Materials, LP Texas Title Company
Brent D. Harris Kathy Rose, Sandra Lucero
JER Custom Homes, LLC Charlie Tellez Steve Raney
C. D. Lee/Britton Insurance & Bonding Joe Bernal Insurance TFCU
Jorge E. Rodriguez Anthony Landavazo; Lisa Daniels
Kayton Lee Residential, Inc. & Financial Services, Inc. Yolie Melendez-Estrada
Cabinet Masters Joe M. Bernal The Dorian Group/Ocean Gallery USA
Brianna Barnes Mike Robles
LMJ Construction Co., LLC L & P Building Supply Miguel Angel Mercado
Capital Bank, SSB Denise McConnell TRE & Associates
Mike Lopez David Ortwein
Loyalty Homes Legacy Real Estate Services Linda Troncoso
Cardel Design Group /TTi Prop. Management. Trim Team
Gustavo Loy Lorraine Huit
M A Builders & Design, LLC Patrick Tuttle Juan & Kris Hernandez
Casa Ford & Casa Nissan Lone Star Title Co. of El Paso USA General Contractors
Mustafa Ali Luke Lowenfield
Metro Homes, Inc. Sam Trimble Javier Olmos
CEA Engineering Group Love Engineering, Inc. Vision Consultants, Inc.
Fernando Torres, Judith Arrunada, Jorge L. Azcarate
Millennium Homes Montez Love Kelly Sorenson
Central Texas Metal Majestic Realtors WestStar Home Loans
Dan Ruth Roofing Supply Co.,Inc.
New Horizon Builders Patti Musshorn Sandy Matyi
Ben Garza, III MAK Roofing & Construction WestStar Bank
Georgiana Garcia Chaparral Materials, Inc.
Pacifica Homes, Inc. Felix Vizarreta David Osborn
Kevin Fortin Masco Contract Services WestStar Title
Juan Jose Vasquez City Bank Texas
Palace Homes, Inc. dba Gale Insulation Janette Coon
Bob Kotarski Tom Harmon
Robert Diaz City Lights
Palo Verde Homes McCoy's Building Supplies
Thomas Brown Jorge Martinez
Edgar Montiel
 13
Association
2017 Issue 4 Builders Outlook

If you have an event or meeting that you would like to share with
News & Events
EPAB members, please submit your information to:
margaret1@elpasobuilders.com

Connect to the El Paso

Association of Builders:
www.elpasobuilders.com

UPCOMING
EVENTS NEW MEMBERS

INSIGHT MORTGAGE Advertise your Builders

COMPANY
National
, State &
Local Buil
ding Industry
News

Outlook
2015: Issu
e 10
2016: H

CONTACT: SHAWN WEEKS

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Recovery ing

business to
www.elp

MAY 10
asobuild
to pick

300 THUNDERBIRD, SUITE 1

ers.com up steam
a
challeng mid
S
EL PASO, TX 79912
BOARD MEETING
teady em
demand
mortgage
ployment
, afforda and economic gro
ble hom
e prices wth, pen es
gradual
upw
rates will
kee and attract t-up
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915-581-4930
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and labor, to

the home
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along with shortages and ava persistent

12 NOON
impeding risin g materi ilab ility of lots
a
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are
ists who overy, acc
participate ording
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of Home
Builders ional Association
Constru (NAHB)
ction For Fal
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EPAB OFFICE
nar.
This recov
NAHB Chie ery is all abou

COMMERCIAL INSURANCE
t jobs, said
people can f Economist David
they have
incomes, get good jobs Crowe.
If ,
the hous that pay
dece about purchthe more comfortab
to move ing mark
forwa et will conti nt And while
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total U.S. to
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building
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BROKERS, INC.
rred in 2008 of 138 millio expected 2017, Crowe said and 5.5 Turning
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The one to have
. n recovery. an impa this is not to the forec Post Gain
been conc caveat is that job As the ct projecting ast, NAH s
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CONTACT: KEN FOSTER

The singl Head On the multi 00
peoples e biggest Crowe notedwinds 354,000 family side,
portfolio asse t in several units last year, produ ction
is the home most hindering factors 331,000 slightly abov ran at
said Crow a level that
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EL PASO, TEXAS 79912

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12 NOON
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915-532-9500
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hustled additional tell Cham for the Mens enberger. s Chairman
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CTU Metro show, said Fern a great with state a nice thing ays whats hot consumer beca

EPAB OFFICE
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staged the Homes. Beautiful s of situations of the art lanes nting attrac
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excited Tech love Acosta Realsuppliers and the Metro Homes
off our mode to be able the flexible but nology. We
Tommy
Mantini so many coming
to El Paso day event.
estate agen ls to the publi to show then again have to folks for and seein of gratitude Estate. We also staff of David
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know time,
market and beca use were the real
showed
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civic center itors who a debt
product we think new to the during this up demand and year has things for with good produ filled the
to offer we have
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EL PASO STAR READY-MIX

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this y Visit Show
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JUNE 10
See More
Photos
Page 8

CONCRETE, INC.
FIRST HOME CONTACT: DAVID The Builders Outlook is the official publication of the
ARMENDARIZ
SATURDAY El Paso Association of Builders. Our award winning
117 S. MOON RD.
BASSETT CENTER EL PASO, TX 79927
monthly newspaper is the only publication to target
10AM 915-860-8555 El Paso home builders and related businesses.

JUNE 14 PREWIRE OF EL PASO Widely distributed throughout the city and available

7
to readers online, the Builders Outlook is an
BOARD AND CONTACT: STEVEN DRURY

7
1515 LEE TREVINO #D important advertising medium for any business that
GENERAL MEETING
EL PASO, TX 79936 want to reach this valuable market.
TBD 915-598-4937

Call 778-5387 today for

EL PASO
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14 Builders Outlook 2017 Issue 4

ExpertAdvice 4 Reasons It Pays to Make Consistent

401(k) Contributions

by Ruth Rivera, VP Bukaty Financial

One of the many benefits of 401(k) plans is
that consistency is built in; there is no need for
participants to decide month by month how much
to contribute or how to invest. A recent study
from the Employee Benefit Research Institution
(EBRI) and Investment Company Institute (ICI)
2017 Fiduciary Calendar
demonstrates how this consistency pays off.
Researchers analyzed a sample of 8.8 million of
401(k) participants with accounts at year-end El Paso Association of Builders Retirement Program
2010 and 2014 in the EBRI/ICI 401(k) database.
They found that participants who contributed
consistently to their accounts:
1. Accumulated significant account balances:
At year-end 2014, 19.5% of the consistent group

had account balances of more than $200,000,


while another 16.1% had between $100,000 and

$200,000.
2. Had higher-than-average balances: The
average account balance for consistent The diverse types of Corporate Fiduciary Topic Learn about Review Administration Audit Fees and Services
participants was 1.7 times higher than all
database participants at year-end 2014.
Retirement Programs Investments Checklist
3. Experienced noteworthy annual growth:
404c Compliance
Overall, the average account balance increased
at a compound annual average growth rate of
15.5% during the four-year period, to $130,493
Does an Investment Fiduciary Topic Learn about Financial Review Terminated Analysis of Service
at year-end 2014. Committee minimize Wellness Programs Employees Force Out Provider Fees and
4. Reaped the benefits of healthy market Fees and Expenses
performance: The U.S. stock market trended up
litigation? Process Services
during the period studied, giving a lift to investors
with higher equity allocations. On average at
year-end 2014, about two-thirds of participants Prudence: Learn the art of Fiduciary Topic Learn about Target Date Review Compliance Benchmark Review for
assets were invested in equities.
Read the full analysis at
documentation for preparation Funds Checklist your Company
Minimizing Risk Strategies
http://tinyurl.com/401kstudy. Keep in mind that of the Department of Labor
investments are subject to market risk, including
loss of principal; past performance is not
indicative of future results; and consistent How to conduct a Service Fiduciary Topic Learn how to help your Review Required Request for Proposals
contributions neither assure a profit nor
guarantee against a loss in a declining market.
Provider services, fees and employees understand Notice Documentation
Disclosure Regulations
service agreements to comply investments.
Heres what you can plan on seeing from Ruth
during the upcoming months.
with the rules and regulations.

 

 
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Builders Outlook 2017 Issue 4 El Paso Disposal
6046 Surety Dr. El Paso, TX 79905
915-778-5387 Fax: 915-772-3038
ExECuTiVE OFFiCERS
PRESiDENT
Don Rassette
ViCE PRESiDENT
TABSTATE DiRECTORS
Randy Bowling - Life Director
Sam Shallenberger
Edmundo Dena
772-7495
EdmundoDena
SECRETARY/TREASuRER NATiONAL DiRECTORS
SergioCuartas Bobby Bowling, IV
ASSOCiATES ViCEPRESiDENT Demetrio Jimenez
SamShallenberger Leslie Driggers Hoard -Alternate
ExECuTiVE ViCE PRESiDENT Antonio Cervantes - Alternate
Ray Adauto
PAST PRESiDENT Honorary Life Members
Carlos Villalobos Mark Dyer
Wayne Grinnell
COMMiTTEE CHAiRS Don Henderson
Membership Anna Gill
Ted Escobedo Brad Roe
Patrick Tuttle Rudy Guel

Finance Committee Past Presidents

Kathy Carrillo Committed to Serve
Henry Tinajero Edmundo Dena
Edgar Montiel
ADViSORYTOTHEBOARD Frank Torres
Jay Kerr, Firth, Johnston, Bunn & Kerr

For All Your Electrical Needs

Frank Arroyos
Greg Bowling
BOARDOFDiRECTORS Randy Bowling
Bobby Bowling Iv
Fernando Torres Metro Homes Doug Schwartz
John Cullers

Residential Specialists
Henry Tinajero West Star Bank
Jay Kerr Firth, Johnston,Bunn & Kerr Robert Baeza
Joe Bernal Employer Benefits Ep Mark Dyer
John Chaney Passage Supply Kelly Sorenson

Tract Homes Custom Homes

John Dorney Dorney Security Rudy Guel
Kathy Carrillo Pioneer Bank Brad Roe
Kathy Parry Hunt Companies Herschel Stringfield
Leti Navarette Bella Homes/Custom Dream Bob Bowling Iii
Linda Troncoso TRE & Associates Pat Woods
Leslie Driggers-Hoard Homes By Design
EPAB Mission Statement:
Robert Foster Southwest Land Dev. Services
The El Paso Association of Builders is a federated professional
Walter Lujan Dawco Builders organization representing the home building industry,
Edgar Garcia Bella Vista Custom Homes committed to enhancing the quality of life in our community by
Jason Cullers Cullers Homes providing affordable homes of excellence and value.
Samira Gonzaelz Icon Custom Homes The El Paso Association of Builders is a 501C(6) trade
Sal Masoud DRE Development organization.

915-208-9313
Ted Escobedo Snappy Publishing 2017 Builders Outlook is published and distributed for
the
Patrick Tuttle Legacy Real Estate Services

Total Customer
El Paso Association of Builders

800-853-3996
Sam Trimble Lone Star Title by Ted Escobedo, Snappy Publishing, LLC
Luis Rosas Hub International ted@snappypublishing.com

Satisfaction
Delton Deal Deal -2-Deal Homes El Paso Texas 915-820-2800
J. J. Vasquez Pacifica Homes

2016 Builder Member Of The Year 2016 Associate Of The Year

Carlos Villalobos StrucSure Home Warranty

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